Have 2 quick simple questions regarding PPC, that I am really hoping someone can answer for me :)

7 replies
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Hi,

Basically Ive started studying a good PPC based course that I read great reviews about and most of it seems to makes sense, apart from the two below points

The course is based around the Adcentre PPC programme, but the questions I want the answers to are questions that relate to PPC in general. Well here goes.

1. On the topic of the keywords for your campaign. When I use the google keyword tool, I notice that some keywords have a higher CPC, does that mean that those keywords are more in demand, and therefore I will have to set a higher bid level ie CPC level for them in my campaign in order for my add to appear more often for that keyword. And if this is true, do I then adjust each keyword accordingly? or is it sufficient to have a general bid level for all the keywords in an adgroup?

2. On the topic of the daily budget. It was suggested that I set a daily budget between 5-20 dollars. However if a cpc is nearly a dollar, then how can such a low daily budget be sufficient, as it will only allow 20 clicks, which does not seem to be a high enough number of clicks to create a sale or guage how well certain keywords are performing.....

I am hoping some one can answers the above two queries for me, I will be incredibly grateful if someone could do so.


Thanks in advance
#answer #hoping #ppc #questions #quick #simple
  • Profile picture of the author Danny Shaw
    You can just set your cpc cost to auto. As for the keywords yes they do cost more because more people are using them. I would always go for direct matches with such keywords "[ ]" but I find mixing the with phrase " " and geo-targeting bring the price down. ie: If you were dirving traffic to a health product, lets say face lift cream. Targeting "face lifts new york", "face lifts london" will get you the same results for a lower cpc.

    I hope this helps a little.
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    • Profile picture of the author Sonny Am
      Originally Posted by Danny Shaw View Post

      You can just set your cpc cost to auto. As for the keywords yes they do cost more because more people are using them. I would always go for direct matches with such keywords "[ ]" but I find mixing the with phrase " " and geo-targeting bring the price down. ie: If you were dirving traffic to a health product, lets say face lift cream. Targeting "face lifts new york", "face lifts london" will get you the same results for a lower cpc.

      I hope this helps a little.

      Hi, thanks for the advice.

      But for example if the person is searching "face lifts new york" and they see your add and click on it, there wont be a conversion to a sale, because the person is looking for a treatment in a specific area, so even if the cpc is low, it wont result in a sale? is that correct?

      Also if you set your cpc to auto, what determines how much you are willing to pay per click, where would the value come from, assuming you said a daily and monthly limit....?
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  • Profile picture of the author Don Schenk
    Hi Sonny,

    And if this is true, do I then adjust each keyword accordingly? or is it sufficient to have a general bid level for all the keywords in an adgroup?
    Yes you can set different bid amounts per keyword. What a PITA when you have 500 keywords! You can still win the bid at a lower price though, because Google is also looking at the quality of your website to which your adwords ad sends people. If the site has good, informational content, Google is happier than if the site is strictly a squeeze page or a sales page.

    I usually use adwords for testing headlines and book titles, and occasionally website domain names. I am always out bid quickly when I send click throughs to a sales page.

    However if a cpc is nearly a dollar, then how can such a low daily budget be sufficient, as it will only allow 20 clicks, which does not seem to be a high enough number of clicks to create a sale or guage how well certain keywords are performing.....
    That is precisely the problem. It boils down to what you can expect to make per visitor. Some will spend nothing, some will buy everything. And the profit on what you are selling determines (along with how much a buyer will spend over the years they are your buyer) how much you can spend per click.

    So, for example if a life insurance agent is selling a policy on which there is a profit per year of $1,000, and the agent can expect to receive that amount for at least 6 years, the customer who buys from this agent is worth $6,000 in commissions to the agent.

    If the agent knows he can sell 3 out of every hundred leads, he will receive a total of $18,000 over the next six years from getting 100 clicks. Thus he can afford to spend $10 per click. His $10 times 100 clicks is only $1,000 in cost when his total commissions over the next 6 years from those 3 buyers is $18,000.

    When you are dealing with high cost per click, a $20 per day budget doesn't go far.

    Adwords is designed to suck money - lots of it.

    :-Don
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    • Profile picture of the author Sonny Am
      Originally Posted by Don Schenk View Post

      Hi Sonny,



      Yes you can set different bid amounts per keyword. What a PITA when you have 500 keywords! You can still win the bid at a lower price though, because Google is also looking at the quality of your website to which your adwords ad sends people. If the site has good, informational content, Google is happier than if the site is strictly a squeeze page or a sales page.

      I usually use adwords for testing headlines and book titles, and occasionally website domain names. I am always out bid quickly when I send click throughs to a sales page.



      That is precisely the problem. It boils down to what you can expect to make per visitor. Some will spend nothing, some will buy everything. And the profit on what you are selling determines (along with how much a buyer will spend over the years they are your buyer) how much you can spend per click.

      So, for example if a life insurance agent is selling a policy on which there is a profit per year of $1,000, and the agent can expect to receive that amount for at least 6 years, the customer who buys from this agent is worth $6,000 in commissions to the agent.

      If the agent knows he can sell 3 out of every hundred leads, he will receive a total of $18,000 over the next six years from getting 100 clicks. Thus he can afford to spend $10 per click. His $10 times 100 clicks is only $1,000 in cost when his total commissions over the next 6 years from those 3 buyers is $18,000.

      When you are dealing with high cost per click, a $20 per day budget doesn't go far.

      Adwords is designed to suck money - lots of it.

      :-Don
      Thanks that has been very helpful.

      If you can set individual bid amounts like you said

      Then can I assume that the most lucrative keywords, are the ones that have a low cpc value on the adwords tool and thus low competition, but still a relatively high search volume (above a thousand) and that are related to the product I am selling if I am an affiliate. As these are the keywords that I can most accurately appear more frequently for if my bid price is high enough? but like you did say, there a lot of other factors that determine the click through rate and sales ie. my actual ad, the resultant page the ad leads to ect...

      Does that also mean that keywords with a high cpc should be eliminated from my campaign, as my bid amount would have to be really high for me to appear enough to receive any clicks.

      Sorry about all the elementary questions. Is there any course or well respected manual on ppc that you can recommend that you know of?

      And thanks again for the response.
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  • Profile picture of the author Don Schenk
    Don't worry. There are no stupid quesions.

    Does that also mean that keywords with a high cpc should be eliminated from my campaign, as my bid amount would have to be really high for me to appear enough to receive any clicks.
    Basically, yes, but if you let these keywords stay in adwords nothing will happen with them.

    Sorry, I really don't know of any courses. Perry Marshall does have a book about it availabe at Amazon. He also did sell a yearly updated version, kind of a super edition, through his website. Just Google him, but I think he has gone off on more of a facebook jag lately.

    :-Don
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    • Profile picture of the author Sonny Am
      Originally Posted by Don Schenk View Post

      Don't worry. There are no stupid quesions.



      Basically, yes, but if you let these keywords stay in adwords nothing will happen with them.

      Sorry, I really don't know of any courses. Perry Marshall does have a book about it availabe at Amazon. He also did sell a yearly updated version, kind of a super edition, through his website. Just Google him, but I think he has gone off on more of a facebook jag lately.

      :-Don
      Thanks again

      I have found that there seems to be quite a lack of courses and information on PPC in general, I don't understand why because as I have read it has been incredible profitable for quite a number a number of people, instead most courses surround SEO and social media.
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